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Additional Reading from MarketBeat Media NVIDIA and Meta Deepen Their AI Alliance—and the Spending Numbers Are EnormousBy Jeffrey Neal Johnson. Originally Published: 2/19/2026. 
Key Points - The expanded agreement ensures that Meta will utilize the upcoming Rubin architecture and Vera processors to build its future data centers.
- New confidential computing technology allows WhatsApp to run advanced artificial intelligence features while maintaining strict user privacy encryption.
- This multigenerational partnership secures a long and reliable revenue stream for NVIDIA as it cements its position as the engine of the global economy.
- Special Report: Here's where I'd put $1,000 today (From Chaikin Analytics)
 The artificial intelligence (AI) trade has evolved from a speculative gold rush into a heavily industrialized arms race. On Feb. 17, 2026, two of the market's most dominant forces, NVIDIA (NASDAQ: NVDA) and Meta Platforms (NASDAQ: META), announced an expansion of their partnership. This multigenerational agreement moves beyond one-off hardware purchases and establishes a deep codesign collaboration intended to secure Meta's computing infrastructure for the next decade. Investors recognized the financial gravity of the deal: NVIDIA shares rose roughly 2.3% to near $189, while Meta shares gained about 0.6% to around $641 after the announcement. The market reaction suggests Wall Street views this alliance as a necessary step for Meta to compete in the consumer AI space and as a confirmation of NVIDIA's long-term revenue durability. The Vera-Rubin Roadmap: Ditching Legacy Tech The most important part of this deal is not only what Meta is buying today, but what it has committed to buy tomorrow. Meta confirmed it will deploy millions of NVIDIA's current Blackwell graphics processing units (GPUs) immediately to handle existing workloads. It also signed a formal agreement to adopt NVIDIA's upcoming Rubin architecture and the Vera central processing unit (CPU). That commitment to the Vera CPU marks a major strategic pivot in how data centers are built. Historically, AI servers paired NVIDIA GPUs with CPUs from competitors such as Intel or AMD. This deal signals Meta's move toward a full-stack dependency on NVIDIA: adopting NVIDIA's Arm-based CPUs (Grace today and Vera in the future) effectively streamlines its infrastructure. For NVIDIA, the win broadens its competitive moat by giving it influence over the entire server rack, not just the GPU. For Meta, tighter integration promises better performance and energy efficiency. The agreement also includes adopting NVIDIA's Spectrum-X Ethernet networking, designed to reduce latency — the lag between requests and responses. In AI training, milliseconds of delay can translate into millions of dollars in lost efficiency, making the networking upgrade a critical part of the deal. Personal Superintelligence: The Revenue Vision Hardware is only half the equation; investors also need to understand the goal. CEO Mark Zuckerberg has articulated an ambitious aim: Personal Superintelligence. Meta wants to provide a highly personalized AI agent to each of its billions of users across Facebook, Instagram, and WhatsApp. This agent would be more than a chatbot — a proactive digital assistant that knows your schedule, preferences and relationships. That vision faces a major obstacle: privacy. WhatsApp is defined by end-to-end encryption, and users are unlikely to accept AI features that require Meta to read their private messages. If users don't trust the AI, adoption — and therefore monetization — will stall. The expanded partnership introduces Confidential Computing to address this. The technology enables NVIDIA's chips to process data without exposing it — effectively allowing AI tasks to run on encrypted data so the system never has to decrypt or view the raw content. By resolving this privacy paradox, Meta aims to deploy AI agents to up to 2 billion WhatsApp users faster than rivals, unlocking a substantial revenue and engagement opportunity without provoking consumer or regulatory backlash. Sticker Shock: Inside the $135 Billion Bill Building this future is extremely expensive. Meta stunned some conservative investors with its capital expenditure (CapEx) guidance for 2026: the company projects spending between $115 billion and $135 billion this year alone. For context, the combined CapEx for the wider Big Tech cohort — including Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL), and Amazon (NASDAQ: AMZN) — is estimated to reach nearly $650 billion in 2026. That scale of spending divides investors. The bear case argues that more than $100 billion in a single year can erode profit margins and risks leaving Meta with depreciating hardware if the AI boom slows. The bull case sees it as defensive — building in-house compute now avoids becoming a tenant of cloud providers like Microsoft or Amazon later. For NVIDIA shareholders, Meta's spending is effectively revenue flowing to the chipmaker. The deal is a major catalyst ahead of NVIDIA's fiscal Q4 earnings report on Feb. 25, 2026. Analysts expect roughly $65.5 billion in revenue for the quarter, and this partnership supports the view that demand is accelerating as the world's largest companies lock in chip supply for future generations. Metrics and Multiples: Buying the Future Despite the massive figures, analysts remain largely bullish on both stocks — but for different reasons. The consensus is that AI has moved from a training phase to a deployment phase, which requires even more hardware than initially anticipated. NVIDIA trades at a price-to-earnings (P/E) ratio of about 47.0. That multiple is high for a traditional industrial company, but NVIDIA's rapid growth makes it reasonable to many growth investors. With an average analyst price target near $264, the implied upside from current levels is more than 40%. The market is effectively betting that more large-scale deals like Meta's will sustain NVIDIA's growth for years. Meta tells a different story. Trading at a P/E of roughly 27.2, it is valued more like a traditional utility than a high-flying tech name. That discount reflects investor anxiety over the $135 billion spending plan. Still, with price targets averaging between $835 and $850, analysts see substantial upside if Zuckerberg's bet on Personal Superintelligence pays off. A Partnership for the Next Decade The expanded alliance between NVIDIA and Meta signals that the AI arms race has no obvious finish line. By locking in supply for chips that won't exist until 2027, Meta is signaling that it views AI not as a feature but as the core utility of the future internet. For investors, the takeaway is straightforward. NVIDIA has entrenched itself as a central engine of the global AI economy, lining up revenue streams that could extend for years. Meta is staking its financial heft on the belief that owning the best infrastructure will secure the consumer relationship. As the industry moves toward 2027, the success of this partnership will likely shape the trajectory of the entire tech sector.
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